Your next IPhone will cost more as AI data centers gobble up chips

Apple CEO Tim Cook said in a Wednesday interview with The Wall Street Journal that his company intends to hike product prices because of the soaring costs of memory chips.

Cook, who is stepping down from his role at Apple on Sept. 1, told the WSJ that price increases for the company’s products are now “unavoidable.” The technology company has not yet publicly disclosed details about how much its product costs will increase or when they will take effect, GuruFocus reported.

“Unfortunately, price increases are unavoidable,” Cook said during the interview. “We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable.”

“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” he continued. “We definitely need memory pricing and supply to return to reasonable levels for consumer products. That’s the bottom line.”

Apple did not respond to the Daily Caller News Foundation’s request for comment.

Cook’s comments come as AI data centers have been rapidly cornering the nation’s available memory chip supply, resulting in a shortage for other applications like smartphones, vehicles, personal computers and gaming consoles, according to Yahoo Finance.

The U.S. is currently facing a shortage of random-access memory (RAM), which is the short-term storage that digital devices such as computers and phones utilize to perform tasks quickly, Fast Company reported in January. The nation’s RAM shortage is projected to last through the rest of 2026 and potentially drive up prices, according to the outlet.

The cost of software and computer accessories in the U.S. were up a record 14.5% in May compared to in 2025, while the price of electronic components for producers surged 27%, according to The Business Times.

Semiconductor manufacturer Intel’s stock was up 7% on Thursday following President Donald Trump’s announcement that the company had agreed to partner with Apple to design and build chips in the U.S., CNBC reported.

All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].

DONATE TO BIZPAC REVIEW

Please help us! If you are fed up with letting radical big tech execs, phony fact-checkers, tyrannical liberals and a lying mainstream media have unprecedented power over your news please consider making a donation to BPR to help us fight them. Now is the time. Truth has never been more critical!